Looking at Jardine Matheson Holdings Limited's (SGX:J36 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Jardine Matheson Holdings Insider Transactions Over The Last Year

The Executive Chairman, Benjamin Keswick, made the biggest insider sale in the last 12 months. That single transaction was for US$10.0m worth of shares at a price of US$37.01 each. That means that even when the share price was below the current price of US$38.41, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 2.2% of Benjamin Keswick's stake. Benjamin Keswick was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 132.70k shares for US$4.7m. But they sold 271.65k shares for US$10.0m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Jardine Matheson Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jardine Matheson Holdings insiders own 6.6% of the company, currently worth about US$738m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Jardine Matheson Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Jardine Matheson Holdings shares in the last quarter. While we feel good about high insider ownership of Jardine Matheson Holdings, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jardine Matheson Holdings. Every company has risks, and we've spotted 3 warning signs for Jardine Matheson Holdings you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.